Bloomberg report reveals how the middle class global growth is quite different then most interpret it to have been

From a Bloomberg report

How does that growing global middle class progress really stack up?

The first decade of the 21st century saw global poverty halved and the size of the global middle class nearly doubled. But don’t get too excited about the coming of a new engine of growth. Why not?

The “middle class” is a matter of thresholds, and they’re all relative.

MISLEADING STATISTICAL REPORTS in the past about the Growing Middle Class revealed in new report.

To read the entire article, go to Sent from the Bloomberg iPhone application.

Here are a few highlights.

During the last measured decade, nearly 700 million people stepped out of poverty. What does that mean?

It means in part that the share of the world’s people living on $2 or less per day declined from 29 percent to 15 percent.

However, the majority of those people “took only a moderate step up the income ladder, changing their status from poor to low income”. That according to a Pew report.

Here is the new analysis of what occurred.

In 2011, more than 56% of the world’s population lived on $2-$10 a day.

Pew says that is why it has modified the definition of the middle class as those who live on $10-$20 a day. That would be about $14,600-$29,200 a year for a family of four.

The share of people within this redefined  income range rose from 7% in 2001 to 13% of the global population in 2011.

Was that the image of change you had?

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